Stressed power assets case: Large well-capitalised banks will continue to do well, says Gaurav Mehta

Large private sector banks with good capital adequacy ratio would continue to do well as the recognition of stressed assets is almost complete and the economy is also showing strong uptick, said Gaurav Mehta, fund manager at Ambit Asset Management.

He said that the Allahabad High Court's statement on the stressed power assets would not have a material impact on corporate sector banks that have decent capital adequacy ratio.

The Allahabad High Court on Monday refused to grant interim relief to private power companies against the Reserve Bank of India’s February 12 circular, paving the way for several large defaulters to be sent to the National Company Law Tribunal (NCLT).